Samil PwC: "Comprehensive Understanding of Tax Reform Proposal Is Essential for Corporate Management"

"2025 Tax Reform Proposal Briefing" Held

Samil PricewaterhouseCoopers announced on October 1 that it held the "2025 Tax Reform Proposal Briefing" on the 2nd floor Amore Hall at its headquarters in Yongsan-gu, Seoul, on September 30.

The briefing was organized to analyze the 2025 tax reform proposal, which was announced at the end of July, and to provide companies with strategic responses. Over 400 corporate representatives attended the event in person, while more than 250 participated online via YouTube live streaming.

Yoonseob Shin, Partner in Domestic Tax at Samil PricewaterhouseCoopers, gave a presentation on the "Corporate Tax Act Amendment," covering topics such as the restoration of corporate tax and securities transaction tax rates, rationalization of the tax scope for capital reserve reduction dividends, and the reasons, application methods, and implications of amendments to the Corporate Tax Act, including the investment and mutual cooperation promotion tax system and consolidated tax payment system, using real-life examples.

Joohee Park, Partner in High Net Worth Advisory at Samil PricewaterhouseCoopers, presented on the "Income Tax Act and Inheritance and Gift Tax Act Amendments." She explained the introduction of separate taxation on dividend income for high-dividend companies, the expansion of the tax base for exit tax, and the application of foreign tax credits to indirect investment income in pension accounts. She also outlined the purpose and details of amendments to the Inheritance and Gift Tax Act, including the expansion of inheritance tax liability for corporations in paid-in capital increases and clarification of the scope of deemed gifts for certain corporate profits.

Kwangjin Park, Partner in International Tax at Samil PricewaterhouseCoopers, addressed the "Amendment to the Act on the Adjustment of International Taxes." He explained the introduction of additional domestic tax related to the global minimum tax, improvements to the allocation method for taxes subject to the global minimum tax calculation, and amendments affecting international taxation overall, such as additional documentation requirements for transfer pricing adjustments, clarification of the scope of gifts within domestic-source other income for foreign corporations, and the new requirement to submit applications for special withholding tax rates for non-residents. Park emphasized, "Amounts paid based on domestic-source dividend income in over-the-counter derivatives transactions are now included in the domestic-source dividend income of foreign corporations, so companies need to pay close attention."

Changhoon Keum, Partner in Domestic Tax at Samil PricewaterhouseCoopers, presented on the "Amendment to the Restriction of Special Taxation Act," introducing new tax support measures such as tax credits for webtoon content production costs and venture investment tax incentives through special purpose companies (SPCs) of venture investment associations. He also provided detailed explanations of amendments regarding the integrated employment tax credit and tax support systems for companies relocating to regional areas. He particularly emphasized, "The amendments to the integrated employment tax credit apply to many companies and cover the structure of the tax credit, post-management, and the calculation of the number of regular employees, so companies should thoroughly familiarize themselves with these changes."

Youngmo Park, Senior Advisor in Local Tax at Samil PricewaterhouseCoopers, introduced amendments to the Local Tax Act, including rationalization of the property tax payment system and succession acquisition tax for membership golf courses. He also explained the content, purpose, and key points of the amendment to the Special Local Taxation Act, such as redesigned tax relief for balanced regional development, expanded tax support for investment and employment promotion in depopulated areas, and other local tax incentives.

Youngmo Lee, CEO of PwC Customs Corporation, presented on the "Amendment to the Customs Act," covering topics such as the prohibition of duplicate customs audits and advance notification periods, as well as the expansion of grounds for reduction of penalties for non-compliance during advance customs review. He also explained the new consolidated submission system for customs valuation data, which will be implemented from September 1, 2025, and discussed key issues arising from the implementation of reciprocal customs duties with the United States, providing response strategies for Korean companies.

Jung Hyun Lee, Head of Tax Advisory at Samil PricewaterhouseCoopers, emphasized, "Taxation has become a core pillar of corporate growth and competitiveness," adding, "A clear and multi-faceted understanding of the tax reform proposal, which reflects the government's policy direction, is a critical task for corporate management."

Jung Hyun Lee, Head of Tax Advisory at Samil PricewaterhouseCoopers, is speaking at the "2025 Tax Reform Proposal Briefing" held on the 2nd floor Amore Hall at the headquarters in Yongsan-gu, Seoul, on the 30th of last month. Samil PricewaterhouseCoopers

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